A silicon wafer slicing equipment was purchased and placed i

A silicon wafer slicing equipment was purchased and placed in service bya semiconductor company. Its cost bašis is RM55,000, and it has an estimafed market value of RM8,000 at the end of an estimated useful life o 14 years. The equipment is classified as asset class 36.0 where its class life is 6, and the recovery period for GDS and ADS is 5 years and 6 years respectively. Compute the depreciation amount in the third year (ds) and the book value at the end of fifth year of life (BVs) by each of these methods: (i). Metod SL The SL method (1 markah/marks) Metod 20096 DB The 200% DB method (ii). (1.5 markah/marks) (ii). GDS The GDS (2 markah/marks) (iv). ADS The ADS (3.5 markah/marks)

Solution

1. Dep amount is RM 3357.14 and BV at end of 5th year is RM 38214.19

2. Dep amount is RM 5773 and BV at end of 5th year is RM 25446

Year DepreciationExpense

2018   $7,857

2019   $6,735

2020 $5,773

2021 $4,948

2022 $4,241

2023 $3,635

2024 $3,116

2025 $2,671

Part 3

Part 4

Period	Depreciation	Balance		Period	Depreciation	Balance
1	3357.14	51642.86		7	3357.14	31500.00
2	3357.14	48285.71		8	3357.14	28142.86
3	3357.14	44928.57		9	3357.14	24785.71
4	3357.14	41571.43		10	3357.14	21428.57
5	3357.14	38214.29		11	3357.14	18071.43
6	3357.14	34857.14		12	3357.14	14714.29